Treasurers Use Automation to Tackle Global Commerce

Treasurers use automation to tackle global trade

The digital transformation of the market has spawned new eCommerce ecosystems that highlight the need for secure payment mechanisms and that match the real-time imperatives of seamless customer service.

New business models born of digital change, such as manufacturer-driven direct-to-consumer (D2C) digital storefronts, have further underlined the need for agile and consistent B2B and business-to-consumer (B2C) payments in a real-time ecosystem, according to “Mapping the Global Commerce Future”, a collaboration between PYMNTS and Citi.

Get the report: Mapping the future of global trade

D2C business models require flexible payment mechanisms that allow brands to provide immediate refunds to consumers to ensure seamless user experiences and fast payments to suppliers and contractors to limit supply chain disruptions.

Setting new expectations for B2B transactions

The massive shift in consumer payments to online channels – where frictionless and seamless B2C transactions are hallmarks – has set expectations that interactions between buyers and suppliers should be just as smooth and intuitive, said Shahmir Khaliq, global manager. of Citi’s treasury and trading solutions, to PYMNTS in an interview.

Read more: Citi says commercial finance innovation requires instant payments and digital platforms

For treasurers, digital transformation often means automating workflow where possible to remove friction from payment process operations, a key component in managing risk and promoting sustainable growth.

The economic challenges of the pandemic, coupled with increased liquidity for those companies that have expanded their eCommerce operations, have made B2B efficiency more important than ever. For treasurers, powerful transaction management options are needed that offer greater transparency and control.

Adopt a “Smart Treasury” mindset.

But the increased interest in instant payments isn’t just about delivering payments on time; today’s treasurer needs access to a better overall user experience (UX). A suite of intelligent treasury tools can help them anticipate and manage upstream and downstream risks while supporting long-term sustainable growth.

Additionally, treasurers with a global eCommerce presence need to access payment capabilities that enable their marketing experiences to be efficient and frictionless.

Such features may include access to real-time FX rates and real-time payments status updates. Treasurers need to optimize every aspect of their organization’s interactions with the global payments ecosystem rather than leaving the critical aspects to market vicissitudes.

Most of today’s global D2C supply chains have been simplified and miniaturized, in line with the transformation of retail into an ever-changing digital ecosystem. An increase in online B2C sales activity leads treasurers to adopt a “smart treasury” mentality.

A data-driven, technology-optimized approach to treasury management leverages technology to remove friction from the entire global marketing process, providing treasurers with transparency on operations and greater control over payment processes.

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORE CARDS – APRIL 2022

Of: Shoppers who have store cards use them for 87% of all eligible purchases, but that doesn’t mean retailers should initiate purchase options now, pay later (BNPL) from checkout. The Truth About BNPL And Store Cards, a collaboration between PYMNTS and PayPal, interviews 2,161 consumers to find out why providing both BNPL and store cards is critical in helping merchants maximize conversion.

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